US EditionMissing government data unlikely to sway Federal Reserve from rate-cut path
The shutdown has delayed key reports on jobs and inflation, limiting data the Federal Reserve uses to guide interest rate decisions amid expected cuts this year.
- The government shutdown on Oct. 1 has cut off economic data the Federal Reserve uses, while the Federal Reserve is expected to cut its short-term rate Wednesday for the second time this year.
- The White House said October's inflation report may never be issued, and this month's hiring figures, to be released this month, will likely be delayed, with September's jobs report still postponed.
- In late September and earlier this month, ADP, payroll processor, showed companies resumed hiring, with monthly gains averaging 29,000 and August's unemployment at 4.3%.
- The data drought raises risks for the Federal Reserve as it is widely expected to cut rates to support growth and may stop shrinking securities holdings, now about $6.6 trillion from a $9 trillion peak.
- Powell said two weeks ago that Fed officials signaled rate cuts in October and December, with the key rate about 4.1%, but they warn about detection risks like 2019's rolloff example.
35 Articles
35 Articles
Missing Government Data Unlikely to Sway Federal Reserve From Rate-Cut Path
WASHINGTON (AP) — The Federal Reserve is expected to cut its short-term rate Wednesday for the second time this year despite an increasingly cloudy view of the economy it is trying to influence. The government shutdown has cut off the flow of data that the Fed relies on to track employment, inflation, and the broader economy. September’s jobs report, scheduled for release three weeks ago, is still postponed. This month’s hiring figures, to be re…
The Fed will probably cut rates today. The shutdown could make future cuts more difficult
President Donald Trump has spent much of the year urging the Federal Reserve to deliver aggressive rate cuts in order to boost the economy. But the government shutdown ironically threatens the very momentum the administration seeks to preserve.
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Missing government data unlikely to sway Federal Reserve from rate-cut path
The Federal Reserve is expected to cut its short-term rate Wednesday for the second time this year despite an increasingly cloudy view of the economy it is trying to influence.
On Wednesday evening, the Fed will decide whether to cut interest rates for the second time in a row. The market is expecting a cut because, while there is uncertainty about the impact of tariffs on US prices, recently released better-than-expected inflation data have strengthened investors' confidence in a reduction in the cost of money. However, the ongoing government shutdown poses a problem. This is increasing uncertainty within the Federal …
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